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10 dividend stocks to ride out Brexit: JPMorgan

Oli Scarff | AFP | Getty Images

JPMorgan told clients to brace for a possible correction in U.S. stocks as Brexit woes weigh on investment sentiment and take down bank shares. The firm recommended investors hide out in dividend stocks.

"We expected a Brexit outcome to have an asymmetric impact for equities, with downside exacerbated by unwind of long equity investor positioning," said JPMorgan's Dubravko Lakos-Bujas. "We see another 5-10 percent downside to the S&P 500 in the short term as likely, but we maintain our 2016 year-end price target at 2,000."

It's unlikely that Brexit will deal a direct blow to U.S. corporate earnings, but trade uncertainty could affect business confidence, said the investment bank. There could also be a short-lived market correction across continents, but a global recession probably won't happen as central banks intervene, the company said.

Add in the fact that 30 percent of global bonds are yielding negatively, and dividend stocks look mighty attractive here, according to the strategist.

To be safe, invest in dividends "with greater emphasis on sustainability," the firm stated in the report, pointing clients to stocks on its "sustainable dividend yield screen." The screen looks at factors such as payout ratio, cash flow and P-E ratio to find cheap stocks that pay a big dividend and will continue to do so.

10 of those stocks are on the table below.